EXHIBIT 99.1

                       PRESS RELEASE DATED APRIL 23, 1998







                       [AMSTERDAM FEDERAL BANK LETTERHEAD]



Form Immediate Release

Contact:  Ambanc  Holding  Co., Inc.  Robert  J. Brittain,  President and  Chief
          Executive  Officer  (518)  842-7200
          AFSALA  Bancorp, Inc., John M. Lisicki, Chairman, President and  Chief
          Executive  Officer  (518) 842-5700

          Ambanc Holding Co., Inc. to Merger With AFSALA Bancorp, Inc.

Amsterdam,  NY - (April 23, 1998) Ambanc  Holding Co., Inc. and AFSALA  Bancorp,
Inc., announced they have signed a definitive agreement to merge AFSALA Bancorp,
Inc. with Ambanc Holding Co., Inc. The transaction will be a tax-free, stock for
stock exchange of 1.07 shares of Ambanc common stock for all outstanding  shares
of AFSALA,  for a total value of approximately $30 million.  Pending  regulatory
and  shareholder  approval,  the  acquisition is expected to be completed in the
fourth  quarter,  1998.  In connection  with the merger,  AFSALA has approved an
option  to Ambanc to  purchase  19.9% of its  common  stock,  exercisable  under
certain circumstances.

         AFSALA Bancorp, Inc., which is headquartered in Amsterdam, New York has
assets of $166 million, and deposits of $139 million. John M. Lisicki, Chairman,
President  and  Chief  Executive  Officer  of AFSALA  Bancorp  will  become  the
President and Chief Executive Officer of the combined bank immediately following
the consummation of the merger, and President and Chief Executive Officer of the
holding  company no later than  January 1, 1999,  following  the  retirement  of
Robert J.  Brittain,  the current  President of Ambanc  Holding Co. The combined
bank will be renamed at a later date.

         As a result of the merger,  Ambanc will have approximately $670 million
in assets,  $470 million in deposits,  and 18 offices.  "A  partnership  between
Ambanc and AFSALA presents tremendous  opportunities," says President and CEO of
Ambanc,  Robert  Brittain.  "This  merger will allow us to provide  even greater
access to our complete  line of bank  products and services and will  strengthen
our position as the dominant local bank in terms of total deposits. In addition,
this merger will resolve our management succession issues, allowing me to retire
knowing that a capable and experienced executive,  and an Amsterdam native, will
be guiding Ambanc into the 21st century."

         AFSALA  Chairman,  President and CEO, John M. Lisicki,  stated,  "We've
built a successful franchise and are pleased to partner with such a strong local
organization.  The coming  together of these two companies - companies that have
enjoyed a long  tradition  of success and respect in the  communities  that they
serve - provides a win/win situation for customers and shareholders.  We believe
that the shareholders of the company become the owners of a premier franchise in
our market area and I am pleased  and  honored in  accepting  the  challenge  of
leading  this  combined  entity.  We will work hard at  finding  ways to combine
operating systems,  integrate businesses,  cut costs and coordinate  activities,
without harming employee morale or disputing customer  relationships.  I believe
this to be an exciting  opportunity  for both companies and I am looking forward
to the process of increasing franchise value."

         Ambanc's  common  stock is traded on the NASDAQ  Stock Market under the
symbol "AHCI".  AFSALA's common stock is traded on the NASDAQ Stock Market under
the symbol "AFED".

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